SMART MONEY: Knowing location of important documents is key to preparation

DEAR BRUCE: I want to be prepared for the responsibility of settling my parentís estate. My father is still in good health at the impressive age of 89. My sister passed away last year. My father has a will, and heís already told me where he keeps his important documents. Do you have any suggestions on how I can educate myself and prepare? ó C.W.

DEAR C.W.: Sounds to me like you have things very much in hand. You have a will, which I assume expresses your fatherís wishes. That would be valid for probate when your dad passes away.

And your father told you where he keeps his important documents, which is an important consideration. So many people pass away with a secret stash and then you donít know where to find all these documents! It seems to me that you have educated yourself already. I donít see any need for any help.

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DEAR BRUCE: My husband refuses to quit smoking. He is presently on my employerís group insurance policy. Only the employee has to attest to their smoking status. I am a nonsmoker, so it is not an issue.

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I have heard that eventually spouses will be required to prove their smoking status. I believe that the insurance rates will be quite high for smokers under this plan. What exactly is a spouseís liability for health care costs for a spouse who does not have insurance?

He is currently not eligible for group coverage under another employer. We file a joint tax return, so I imagine that at a minimum I would be responsible for paying the new tax associated with not having health insurance if he was unable to. But what if he gets sick? To what extent am I liable for his health care costs? I can absorb costs to a certain level, but at some point, it would untenable.

I currently contribute to a health care savings account that covers both of us. Other than a slight smokerís cough, he is a healthy man in his mid-50s. What are our options here? Can you tell me what to expect as to my liability for his medical bills if he were to go uncovered? How do the plans under Obamacare handle smokers? ó M.M.

DEAR M.M.: You made the point that your husband refuses to quit smoking and apparently doesnít care what happens to the people he leaves behind. What else can be said?

As far as him being covered under any new plan your employer adopts, there is nothing we can do about that. The nature of it would be that there will be a separate high rate for smokers. And you might not have the option of simply dropping him from the policy if the cost increases dramatically, which is another problem.

A spouseís liability for health care costs for an uninsured spouse depends upon the state you are in and a number of specific statutes. He may be penalized if he doesnít have health insurance that is available.

As your husband gets older, smoking will take a toll on his health. You have to wonder why someone is so foolish to allow an addiction to make these kinds of demands on his life.

ó Send questions to bruce@brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided. The Bruce Williams Radio Show can now be heard 24/7 via iTunes and at www.taeradio.com. It is also available at www.brucewilliams.com.